Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2023

Bill 118 hr 306, also known as the Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2023, aims to address the issue of student loan collection practices in bankruptcy cases. The bill seeks to protect borrowers who are struggling to repay their student loans by preventing abusive collection practices by creditors.

Under the provisions of the bill, creditors would be prohibited from engaging in certain aggressive tactics when attempting to collect on student loan debt during bankruptcy proceedings. This includes tactics such as harassing phone calls, threats of legal action, or other forms of intimidation.

Additionally, the bill would require creditors to provide borrowers with accurate and transparent information about their rights and options for repayment during bankruptcy. This would help ensure that borrowers are fully informed about their rights and are able to make informed decisions about their financial situation. Overall, the Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2023 aims to protect borrowers from abusive collection practices and provide them with the support and resources they need to navigate the bankruptcy process.